In recent weeks, the pharmaceutical sector in China has been shaken by a series of high-profile corruption investigations, with numerous officials, including hospital directors and party secretaries, being scrutinized and some voluntarily reporting to authorities.
According to the Henan Provincial Commission for Discipline Inspection and Supervision, as of October 21, Chen Jianguo, the former Party Secretary of Xinxiang Medical College, is currently under investigation for serious violations of discipline and law. Born in August 1962, Chen has held various prominent positions, including Secretary of the Party Committee at Xinxiang Medical College’s First Affiliated Hospital and President of Xuchang University. He assumed the role of Party Secretary at Xinxiang Medical College in September 2017.
Chen has faced disciplinary action before. Reports indicate that during his tenure at Xuchang University from 2014 to 2015, he orchestrated the purchase of 11 cases of Moutai liquor for official receptions, disguised as reimbursements for office supplies. Furthermore, from March 2013 to March 2016, the university rented two 2.0T Passat cars for Chen and his associates. In February 2020, he received a serious warning from the party for his violations, and any illicit gains were confiscated.
In 2024, the anti-corruption campaign in the pharmaceutical sector remains relentless. As of October 23, more than 280 key figures within the healthcare system have been investigated this year alone, including over 20 high-ranking officials. Notable among them are Wei Xinga, Secretary of the Health Commission in Heilongjiang, and Ge Yang, former Vice Chairman of the CPPCC in Fuyang, Anhui, and former president of the Fuyang Second People’s Hospital.
Moreover, numerous hospital leaders are under investigation, with at least ten hospital directors or secretaries announced as under scrutiny in October alone, three of whom are from tier-one hospitals. For instance, on October 21, it was reported that Yan Jiafu, Party Secretary of the People’s Hospital in Longmatan District, Luzhou, Sichuan, is facing serious allegations of corruption and is undergoing an inspection by the local discipline inspection authority.
Additionally, on October 17, both Ma Kezhong, a member of the Party Committee and Vice President of the Zhongyang Hospital in Xiangyang City, and Cai Gang, former Executive Vice President of the First Affiliated Hospital of Shihezi University, were also announced as under investigation. The following day, the Hainan Provincial Commission for Discipline Inspection disclosed information about Zheng Wuping, a member of the Party Committee and Vice President of the Second Affiliated Hospital of Hainan Medical University, who voluntarily reported for serious violations.
In addition to Zheng, recent investigations have also revealed cases of self-reported corruption among figures in the healthcare sector, including Xiang Erfu, the former Party Secretary and Director of the Cancer Hospital in Xiangxi, Hunan, and Lin Yuanjun, actual controller of Yunnan Jingxing Pharmaceutical Group.
Various local commissions have recently disclosed typical cases of misconduct and corruption. On October 22, the Guangxi Discipline Inspection Commission reported that from 2005 to 2021, Li Mingqiang, former Party Secretary and Director of the Liuzhou Center for Disease Control, misused his position to facilitate the procurement of lab equipment and medical supplies for private businessmen, receiving substantial kickbacks in return.
Also, on October 21, the Hunan Provincial Commission detailed ten typical cases of corruption linked to bidding processes, including a case involving Yin Yuying, former Party Secretary and Chairman of the CPPCC in Huaihua, who intervened in medical equipment procurement projects from 2015 to 2023 and received extensive financial benefits in exchange for his assistance.
With the ongoing campaign against corruption in the pharmaceutical sector, scrutiny over transactional corrupt practices in medical procurement has intensified. On October 11, the State Administration for Market Regulation released a draft guideline for pharmaceutical companies to prevent risks associated with commercial bribery, detailing measures to identify and mitigate risks in nine categories of activities, including academic visits and the provision of medical devices.
These new regulations explicitly prohibit pharmaceutical companies from assigning sales targets to representatives and from evading procurement processes under the guise of donations, setting a clear framework aimed at establishing a comprehensive compliance system within the industry.
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